The South Korean government is considering implementing a price cap system for oil for the first time in 30 years.

Gate News reports that on March 8, sources revealed that due to the escalation of conflicts in the Middle East and concerns over rising energy prices, the South Korean government is considering implementing a fuel price cap system for the first time in nearly 30 years (a policy tool setting a maximum retail price for fuel). As the U.S. and Israel target Iran and Iran retaliates, global oil prices have surged accordingly. Previously, fluctuations in international oil prices took about two weeks to affect domestic prices, but this time, the impact on South Korea’s fuel prices was almost immediate, prompting officials to begin examining the feasibility of introducing a price cap. Sources said the government is carefully weighing this option, as there could be side effects such as market distortions and fiscal burdens.

Earlier, South Korean President Lee Jae-myung ordered that if implementing a nationwide uniform fuel price cap proves difficult, then regional and fuel-type-specific caps should be quickly established. The next day, Lee also warned refiners not to collude to raise gasoline prices. Following the president’s instructions, the government formed an inter-agency task force to crack down on illegal fuel distribution, hoarding, and unfair trading practices. However, despite these measures, gasoline prices at domestic gas stations continue to rise.